Investments

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investments

InvestmentsNewmark has a 27% ownership in Real Estate LP, a joint venture with Cantor in which Newmark has the ability to exert significant influence over the operating and financial policies. Accordingly, Newmark accounts for this investment under the equity method of accounting. Newmark recognized equity income (loss) of $5.0 million and $0.0 million for the three months ended June 30, 2023 and 2022, respectively, and $8.5 million and $0.0 million for the six months ended June 30, 2023 and 2022, respectively. Equity (loss) income is included in “Other income, net” on the accompanying unaudited condensed consolidated statements of operations. The carrying value of this investment was $99.8 million and $91.3 million as of June 30, 2023 and December 31, 2022, respectively, included in “Other assets” on the accompanying unaudited condensed consolidated balance sheets. On July 20, 2022, Newmark exercised its redemption option and expected to receive approximately $88.4

million from Cantor. In December 2022, the Audit Committee authorized a subsidiary of Newmark to rescind its July 20, 2022 written notice exercising the optional redemption of its 27.2% ownership interest in Real Estate LP and amended the joint venture agreement between Newmark and Real Estate LP to provide for a redemption option for this investment after July 1, 2023, with proceeds to be received within 20 days of the redemption notice. A payment of a $44.0 thousand administrative fee was made to Newmark in connection with such amendment. On July 1, 2023, Newmark exercised its redemption option and received payment of $104.7 million from Cantor in July of 2023, terminating Newmark’s interest in Real Estate LP.

Investments Carried Under Measurement Alternatives

Newmark has acquired investments in entities for which it does not have the ability to exert significant influence over operating and financial policies.

For the three and six months ended June 30, 2023, Newmark recorded unrealized losses related to these investments of $1.0 million and $1.0 million, respectively. For the three and six months ended June 30, 2022, Newmark recorded unrealized losses related to these investments of $15.5 million and $13.9 million, respectively. Newmark did not recognize any realized gains (losses) related to these investments for the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, Newmark recorded realized gains related to these investments of $0.0 million and $1.6 million, respectively. The changes in value are included as a part of “Other income (loss), net” on the accompanying unaudited condensed consolidated statements of operations. Additionally, the Company did not make any new investments during the three and six months ended June 30, 2023. For the three and six months ended June 30, 2022, the Company invested $0.3 million and $2.7 million, respectively. The carrying values of these investments were $7.7 million and $8.7 million as of June 30, 2023 and December 31, 2022, respectively, and are included in “Other assets” on the accompanying unaudited condensed consolidated balance sheets.